COMAC Raises Concern Over Increasing Fuel Reselling Activities in Cape Coast

 

The Chamber of Oil Marketing Companies (COMAC) has expressed concern over the rising sale of fuel in gallons and bottles by unregulated individuals in parts of the Central Region, describing the practice as unsafe and potentially unlawful.

During a recent mystery shopping exercise across fuel retail outlets in the region, COMAC’s Chief Executive, Dr. Riverson Oppong, revealed that the team encountered an expanded form of informal fuel trading, commonly known as “gaogao.” He said individuals purchase fuel directly from filling stations, store it, and later resell it in small quantities—often in gallons and used water bottles—particularly around fishing communities.

“We observed an upgraded level of ‘gaogao,’ where people buy fuel from filling stations, store it, and sell it in smaller quantities to those who need very little. We saw this especially around fisherfolk sites,” Dr. Oppong stated. “We are unsure what policy framework permits this type of activity, and for that reason, we need to bring it to the attention of the regulator. If a framework exists that allows it, then regulatory intervention is urgently needed.”

COMAC intends to engage the National Petroleum Authority (NPA) to determine whether the activity falls within any approved regulatory guidelines and to push for appropriate enforcement where necessary.

Slow Market Growth in Central Region

The Chamber’s assessment also revealed that the petroleum retail market in the Central Region remains relatively slow compared to other parts of the country, despite a generally high compliance rate among fuel stations.

Dr. Oppong attributed the sluggish market performance to the region’s geographic position.

“The Central Region is situated between three major hubs—the Western, Ashanti, and Greater Accra regions. Because of this, many vehicles fuel up in Accra on their way to Takoradi, or in Kumasi before heading toward the Western Region. This makes the Central Region a ‘cushion hub,’ resulting in lower patronage,” he explained.

He added that the competitive environment is uneven, noting that COMAC observed three fuel stations operating along the same stretch of road—one busy, while the other two recorded minimal activity.

Innovative Strategies to Attract Customers

In response to the slow market, some station managers have devised creative methods to draw in customers.

According to Dr. Oppong, one station offers free breakfast every Friday, prompting many customers to delay fuel purchases until the end of the week. Another provides food on credit as a customer attraction strategy, while a third station caters specifically to heavy-duty trucks by offering a spacious rest area, encouraging drivers to refuel before departing in the morning.

“These examples show how dynamic the market has become as stations try to secure their niche,” he noted.

Compliance and Safety Monitoring

COMAC’s monitoring exercise sought to assess operational standards, safety adherence, and fuel quantity accuracy across service stations in the Central Region.

The team found that approximately 85 percent of the inspected stations were compliant with safety protocols. Random tests were also conducted to verify that customers were receiving accurate fuel quantities.

COMAC emphasized that it will continue its nationwide monitoring programme to strengthen industry compliance, promote fair competition, and collaborate with regulators to address emerging challenges in the petroleum retail sector.

Source: theghanareport